World-class discovery in Ghana

Since the late 1990s, through our interest in the Espoir field, Tullow has had an interest in the West Africa Transform Margin, the geological trend that extends from Côte d’Ivoire to Ghana. To exploit our geological knowledge and expertise in the region, Tullow has expanded its interests there, acquiring interests in eight licences over the last three years.

Through opportunistic transactions with both the government and partners in adjacent blocks, three licences were acquired in Ghana during 2006. The three blocks contained both marginal discoveries and acreage with significant exploration potential. The Mahogany prospect, a stratigraphic trap, had been identified on the existing 3D seismic data and was the first prospect to be drilled.

Stratigraphic traps are subtle, have considerable upside potential and are not as intensely explored for as structural traps. They are not easy to identify and they require a determined effort to target. A strong track record from exploration in Europe, Africa and South Asia and our integrated approach give Tullow the confidence to tackle these significant exploration opportunities which are one of our core plays.

By applying our expertise in stratigraphic traps, integrating both continental scale, regional geology and detailed local geological knowledge, the Mahogany and Hyedua prospects stood out as strong candidates for drilling and resulted in the Jubilee discovery in 2007. Appraisal and development work has already commenced on the field and a parallel appraisal programme is under way to determine its significant upside potential.

The same skills applied during the discovery of Jubilee are now being applied to the rest of the West Africa Transform Margin where further upside potential exists. This work has already yielded a success with the Odum discovery, another stratigraphic trap in a new play fairway. Drilling on additional prospects such as Teak and Tweneboa is planned for the next 12 months.

Our success in Ghana arose through the focused application of geological expertise, proactive business development and strong working relationships with government and partners. We expect this success to result in first production from the Jubilee field in 2010, a significant step for Tullow that will make a major contribution to the Ghanaian economy.